New South Wales Greenlights On Nut Road’s Acquisition of Donaco

New South Wales has greenlit On Nut Road Limited’s acquisition of Donaco International, securing the final approval needed to close the deal. As a result, the latter company will delist from the Australian Stock Exchange on August 8.

On Nut Road to Acquire Donaco

On Nut Road, a Hong Kong-based, Argyle-backed special purpose vehicle, set out to acquire Donaco International earlier this year, proposing roughly $36 million (USD) for the acquisition. This agreement values Donaco at roughly $0.029 per share, which is significantly higher than the original price of its shares prior to the proposal and attests to On Nut Road’s strong confidence in the business’s long-term success.

On Nut Road already owns a 12.84% stake in the Asia Pacific leisure giant and is looking forward to completing its ownership.

The Deal Has Secured Final Approvals

According to the latest announcement, the Supreme Court of New South Wales greenlit the scheme of arrangement, allowing the Hong Kong-based special purpose vehicle to complete its ownership.

This approval comes shortly after Donaco’s shareholders gave the thumbs up to On Nut Road’s takeover offer, with an overwhelming majority voting in favor of the agreement. For context, 98.11% of the shareholders approved the transaction.

Donaco’s board has likewise highlighted absolute backing for the transaction. The company leaders have listed several reasons for their overwhelming support, which include regional and tax uncertainty in Cambodia, as well as Thai border restrictions that have limited the flow of customers to Donaco’s Star Vegas Resort & Club.

On Nut Road to Acquire Donaco by August 19

On Nut Road will therefore proceed to acquire the remainder of Donaco’s shares. The scheme will become effective once the Supreme Court’s orders are lodged with the Australian Securities and Investments Commission (ASIC), which Donaco hopes to complete on August 8.

Once that happens, its shares will be suspended from trading at the close of trading on the same day, and Donaco will be removed from the ASX. The transaction is expected to wrap up by August 19. On the same day, eligible shareholders will be paid compensation per the deal.

Donaco promised to provide a timely update if this schedule is to change.